US bank Lehman Brothers bankruptcy: World KRACK?

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martien007
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US bank Lehman Brothers bankruptcy: World KRACK?




by martien007 » 15/09/08, 11:32

.... and the show continues ....

this time the US Treasury no longer wants to pay, it sucks : Shock:

but who will pay for their bullshit?

today the stock market plunges in Paris by more than 4% ....

when is the Great Financial Crisis like in 1929; we may already be in there, but it's more hidden.

AFP the 15 / 09 / 2008 11h23
Lehman Brothers: the US Treasury can't always be the savior (Lagarde)

French Economy Minister Christine Lagarde said on Monday that the bankruptcy of the American investment bank Lehman Brothers was "a shock" but that the American government could not always save "those who are in bad shape ".

"It is a flagship of the falling banking industry", acknowledged Ms. Lagarde on Europe 1.

"It's a shock, at the same time it is the testimony of a certain balance: the US Treasury cannot constantly go to the rescue of those who are in bad shape," she said.

"What seems positive to me is that it has broadened the refinancing capacities of banks," she added.

The US Treasury had announced in early September a government trusteeship of the mortgage refinancing organizations Fannie Mae and Freddie Mac, while they restructured their finances, which had been damaged by the credit and real estate crisis.

The American investment bank Lehman Brothers announced Monday that it would file for bankruptcy during the day, "in order to protect its assets and maximize its value", for lack of finding a buyer.

"The other news, in this somewhat gloomy morning, which seems rather good to me, is the fact that Bank of America announces its merger with Merrill Lynch, (...), it is clearly an exit operation" , also stressed Ms. Lagarde.

Asked about the risks represented by the announcement of the bankruptcy of Lehman Brothers, the minister was delighted that "a dozen of the world's largest banks" have "come together to constitute a line of credit allowing their refinancing. interbank ".

"It is also a sign that they collectively have the desire to close ranks," said Ms. Lagarde.

"On the European markets, the governors of the central banks, the President of the ECB, the authorities of the financial markets and the officials of the Treasury, were in concert this weekend", during a meeting of finance ministers of the euro zone in Nice, recalled Christine Lagarde.

"We have put in place the mechanisms to ensure that the markets are not seriously messy," she continued, acknowledging that "the financial crisis and its manifestations are not over".
Last edited by martien007 the 15 / 09 / 08, 20: 44, 1 edited once.
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by Christophe » 15/09/08, 11:55

I will not cry over their grave ... nor that of the property developers who will be gunned down soon because their conscience will overtake them ..

When the people understand that the finance it's pussy pee and it is not the rich who are pulling the strings but that it is above all us all the consumers who make the weather forecast of the economy ... besides it is us the consumers who make THEIR FORTUNES ....

When this is accepted by everyone, then we will have taken a big step in changing the world ...
Last edited by Christophe the 16 / 09 / 08, 02: 51, 2 edited once.
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by Rulian » 15/09/08, 12:42

If the US Treasury does not want to buy Lehman Brothers, this is a very interesting novelty but one that risks causing panic in financial circles and further accelerating the crisis.

Indeed for some years, we had a mind-blowing logic which consisted in privatizing profits (when a group is doing well, it cuts all ties with the states to maximize profits) and in nationalizing losses (when the Dupond Company breaks the mouth after a completely short-term irresponsible management, she will cry with the state to have financial support ...) It is therefore the taxpayer who pays for the bullshit of the leaders but when it works, there is no benefit for the state / taxpayer. For the speculator, on the other hand, it is very practical, because when the risk generated by investments becomes reality, it is discarded on the community. So more risk for the investor in fact.

In recent times, the American state had been particularly complacent to this little game, well aware that it was the last essential net to the minimum of confidence to maintain for the transactions to continue. But apparently it’s starting to do a lot and he’s fighting. Suddenly speculators may find themselves having to face the risks they should never have ceased to assume, and it is a gulf so dizzying that it will be saved-who-can !!

Two scenarios: either the financial authorities relaunch rescue plans so that the taxpayer pays for these idiots, or they say stop and it will be a worse and worse crisis that can go very far.

I would rather bet for the first option knowing the financial conformism of our leaders, but the rapid evolution of international power relations could push states to change their strategy ... In addition the American taxpayers and therefore their whole country are no longer really creditworthy. There may be no one left to pay off the debts. We are in the era of all possibilities. The key factor will be how much loss the US Treasury can still buy back ...
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by Christophe » 15/09/08, 12:51

Rulian wrote:Indeed for some years, we had a mind-blowing logic which consisted in privatize profits (when a group is doing well, it cuts all ties with the states to maximize profits) and nationalize losses (when the Dupond Company breaks its face following an irresponsible management completely short termist, it will cry with the state to have financial support ...)


ImageImage

Nice analysis but it also works for France it seems to me ...

The example of highways: construction financed mainly by the State and operation by private companies ... some of which are listed on the stock exchange!

A bit as if the bottom of trade, the initial stock and the working capital of the small traders were offered by the State ...
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by I Citro » 15/09/08, 13:17

: Arrow: Well yes, like ELF, which has become TOTAL and private, like Crédit Lyonnais whose debts we are paying off ...

I have an account "sleeping" in a Bank and which costs me a few Euros in management fees each year. I have to close it and if everyone did like me, it would hurt ...

In any case, French banks, which are among the most polluting and CO2 emitting companies on the planet due to their investments, will soon reduce their sails drastically by dismissing and closing many branches.
The American crisis has become a global crisis. The question is to know how far the bankers, the State and Europe will make us put our hands in our pockets ...

More than ever the choice of an Alternative and responsible Bank like Crédit Coopératif ou the nave proves to be judicious because in addition to offering us to leave a corrupt system, it allows us to act according to our convictions ...
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by I Citro » 15/09/08, 13:26

Christophe wrote:I will not cry on their grave ... nor on that of the property developers who will be gunned down soon because their conscience will catch up with them ... Good riddance!

When the people understand that the finance it's pussy pee and it is not the rich who are pulling the strings but that it is above all us all the consumers who make the weather forecast of the economy ... besides it is us the consumers who make THEIR FORTUNES ....

When this is accepted by everyone, then we will have taken a big step in changing the world ...


+1 : Arrowu:
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by SixK » 15/09/08, 13:32

5.55% drop at 13pm! :)
Outch if there is another bank to close in the process, I think we left for a nice domino effect!

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by bham » 15/09/08, 13:49

Agree with your analyzes; I was listening to France Inter at 13 p.m. and an economic specialist who was relaying information saying that we were only in the 1st third of the crisis and that the current good US economic figures would collapse when the US presidential elections were held; which risks deepening the crisis and having a house of cards.

Many economists, bankers, try to reassure people, especially in France, by saying that no French bank can go bankrupt but the entire banking system is interdependent and the house of cards will not necessarily come from the financial difficulties of the banks French but rather the stock market panic linked to successive US bankruptcies: there is only to see what is happening today, an American bank goes bankrupt and the world stock markets plunge.
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by Christophe » 15/09/08, 13:56

Speaking of PEE, investors are pissing on it !! Already more than -5% since this morning at CACA-ANNUITY !! : Mrgreen: : Mrgreen: : Mrgreen:

Cac40: 4 107.75 -5.19%
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by Christophe » 15/09/08, 14:33

Wall Street expected to open sharply lower after Lehman's announcement

http://www.lesechos.fr/investisseurs/an ... e/nyse.php
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